An ex-adviser to President Donald J. Trump will issue a fractional reserve-backed stablecoin.
Stephen Moore, Trump's appointee to the Federal Reserve Board,partnered with former Reagan deputy general counsel Ralph Benko and Everipedia co-founder Sam Kazemian to launch a new stablecoin called Frax. Moore will become its co-founder.
Central banks will soon feel the competitionfrom private currencies such as Frax, – Moore said in a statement, – The days of government monopoly on currencies by central banks are over.
Currencies are designed to preserve value,but given the wild level of devaluation, the world needs a global currency that will have stable value in order to benefit consumers, enterprises and investors.
According to the statement, Frax will be provided with 1: 1 reserves in US dollars, and the reserves will be leased and will bear interest so that the cost of Frax remains close to one dollar.